NEWARK
– Attorney General Paula T. Dow and
the State Division of Consumer Affairs have
filed suit against an allegedly fraudulent
charity that claimed to help children battling
cancer, but is accused of abusing its tax-exempt
status to buy millions of dollars’ worth
of luxury cars without paying sales tax, and
then exporting the cars while not paying one
dime to help cancer patients.

According
to the State’s six-count civil Complaint
filed in Monmouth County, Patrick J. Caffrey,
of Keansburg, is the president of Matawan-based
Tri County Charity Center, while Carl F.
Monto, of Beachwood, has held himself out
to be Tri County’s corporate secretary.
Using false identities and fraudulent driver’s
licenses, Monto allegedly purchased vehicles
on behalf of Tri County with Caffrey’s
approval, misusing the purported charity’s
501(c)(3) tax exempt status in order to
evade paying sales tax. Additionally, Monto
and his wife, Denise Monto, both allegedly
served as presidents of I Buy Cars For You,
an unlicensed motor vehicle dealership that
they operated out of their home. The State’s
lawsuit charges Caffrey, the Montos, Tri
County, and I Buy Cars For You with violations
of New Jersey’s Consumer Fraud Act,
Charities Registration and Investigation
Act, and Charities Regulations.

Caffrey,
Carl Monto and Tri County are accused of
portraying Tri County as a charity in order
to evade paying sales tax. Caffrey and Tri
County are also accused of providing false
information to the Division of Consumer
Affairs about the purported charity’s
purpose, finances, and assets. Carl and
Denise Monto, and I Buy Cars For You, are
accused of acting as an unlicensed motor
vehicle dealership without an established
place of business.

According
to the Complaint, Caffrey established Tri
County in 2005 and has operated the purported
charity under various names including “ITHURTS2BFABULOUS
Foundation,” “Charity Out Reach
Center,” and “Tri State Charity
Center.” After achieving 501(c)(3)
federal tax exempt status in 2008, Tri County
purchased a total of 61 luxury and other
motor vehicles, for a total of more than
$2.3 million in 2009 and 2010 alone. The
organization has allegedly purchased 25
motor vehicles so far this year.

As
stated in the lawsuit, Tri County did not
pay sales tax on the purchase of any of
the 61 vehicles. Rather, each purchase was
conducted using an Exempt Organization Certificate
provided by the New Jersey Division of Taxation
based on Tri County’s federal 501(c)(3)
status. The certificates bear language stating
the purported charity is exempt from New
Jersey Sales and Use Tax for “all
purchases (except energy and utility service),
if the purchase is directly related to the
organization’s purposes and made with
organization (not personal) funds.”

“We
allege these defendants set up their so-called
cancer charity in order to deceive the government
and consumers, and to evade the sales tax
while purchasing millions of dollars worth
of luxury cars,” Attorney General
Dow said. “Scams that abuse the tax-exempt
status granted to a charity don’t
just harm taxpayers, they tarnish the image
of good charities that legitimately help
those in need.”

The
State further alleges that in the organization’s
charity registration with the Division of
Consumer Affairs, Tri County misrepresented
that its purpose was to “supply needed
funds to families or individuals battling
cancer,” and that donations “assist
the Children’s Hospital of Memorial
Sloan-Kettering.”

A
now-defunct website for the organization,
at www.charityoutreachcenter.org,
featured the image of a small child wearing
surgical scrubs and stated, “100 percent
of your donations supply funding to Memorial
Sloan-Kettering Cancer Center,” and
“Children Need Your Help!” The
website invited donors to send in their
donations by mail, or to call “Karl
Mondo,” one of the aliases allegedly
used by Carl F. Monto.

The
State maintains that, in contrast with the
organization’s philanthropic claims,
Tri County has never had a relationship
with or given money to Memorial Sloan-Kettering.

“Scheming
to deceive consumers out of hard-earned
donation dollars is despicable conduct,
particularly in this economy when every
dollar counts,” said Thomas R. Calcagni,
Director of the New Jersey Division of Consumer
Affairs. "Consumers rightfully expect
their donations to help legitimate charities
fulfill their mission and we regulate the
charities industry to guard against donor
fraud. Our new Charities Fraud Unit is continuing
its pursuit of crooked charities as we continue
to urge potential donors to be wary of charity-related
scams.”

The
State also alleges that although charities
are required to report their financial activities
and assets annually to the Division of Consumer
Affairs, Tri County repeatedly failed to
disclose to the Division its vehicles and
the funds with which they were purchased.

On
several occasions when purchasing vehicles,
Carl Monto allegedly signed a declaration
stating the purported charity “will
be using this vehicle to transport people
and equipment related to company business.”

Carl
Monto also allegedly used false identities
and altered driver’s licenses to purchase
more than half of the vehicles acquired
by Tri State. According to the Complaint,
Monto’s actual driver’s license,
which identifies him as “Carl F. Monto,”
was suspended in June 2010. He allegedly
misrepresented his identity in many of the
purchases by identifying himself as “Carl
Mondo,” “Karl Mondo,”
and “Carl Mont” on purchase
contracts and other documents.

As
outlined in the Complaint, a letter from
Caffrey to auto dealers used yet another
variation of Monto’s name when it
stated, “Please be advised that Karl
Monto has full authority to conduct business
on behalf (of) Charity Out Reach Center,
Inc. for the purpose of Purchasing, Motor
Vehicle Titles, Renewals, replacements,
and registrations.”

Rather
than using the purchased vehicles for charitable
purposes as required to qualify for sales
tax exemption, Tri County allegedly exported
many of the vehicles soon after purchase.
Between April 2010 and July 2011, a total
of 32 of the vehicles purchased by Tri State
were exported within a few months of their
purchase, to destinations including Canada,
China, Finland, Georgia, Germany, Lithuania,
South Korea, and Sweden.

The
State also alleges that I Buy Cars For You,
a limited liability company operating out
of the Beachwood home of Carl and Denise
Monto, acts and advertises itself as a motor
vehicle dealership in violation of state
law.

As
stated in the Complaint, I Buy Cars For
You maintains a website, www.ibuycarsforyoullc.com,
in which it offers to locate, sell, and
export new cars, trucks, motorcycles, ATVs,
watercraft, and snowmobiles to consumers
in New Jersey and worldwide. The site features
a roster of manufacturers including Aston
Martin, Lamborghini, Maserati, and Rolls
Royce and states, “If you require
a vehicle you don’t see below, we
will accommodate.”

The
website includes links to read the homepage
in several languages. It also includes a
prominent link titled, “Russian Page,”
which describes the company’s services
in Russian along with the English instruction
to “Contact Carl Monto Today. For
The Deal You Deserve.”

Under
state law, motor vehicle dealerships must
obtain a license from the New Jersey Motor
Vehicle Commission, and must service and
display motor vehicles in a permanent building
with not less than 1,000 square feet of
floor space. Although advertising the sale
of motor vehicles, I Buy Cars For You allegedly
has neither an MVC license nor an established
place of business.

The
State’s lawsuit against the defendants
seeks full restitution for any affected
consumers, as well as civil penalties for
multiple violations of the Consumer Fraud
Act and related regulations. The Consumer
Fraud Act provides for civil penalties of
up to $10,000 for the first violation, and
up to $20,000 for each subsequent violation.
In addition to seeking its attorney’s
fees and investigative costs, the State
is further asking the Court to permanently
enjoin Caffrey from ever registering or
operating a charitable organization within
the State, and to revoke Tri County’s
registration as a charity.

“We’re
asking the Court to shut down this organization
– permanently,” said Calcagni.

Calcagni
thanked the New Jersey Motor Vehicle Commission
for its role in alerting the Division to
Tri County’s alleged activities, and
for its important assistance in the investigation.

“This
case is a prime example of the important
role that state government partnerships
play in protecting the citizens of this
state,” said Motor Vehicle Commission
Chairman and Chief Administrator Raymond
P. Martinez. “Working regularly with
the law enforcement community and the Division
of Consumer Affairs, the MVC has made great
strides in weeding out attempts to commit
all types of fraud and abuse.”

As
part of its “Investigate Before You
Donate” campaign, the Division is
urging consumers to obtain important information
about a charity, including whether it is
registered with the State and how it spends
donation dollars, before agreeing to give
money. Consumers can turn to the Division
of Consumer Affairs' Directory of Registered
Charities, at www.NJConsumerAffairs.gov/charity/chardir.htm,
for information on the income and expenses
reported by each charity registered to solicit
funds in the State. To obtain more detailed
financial information by requesting a charity's
annual filing information, consumers can
call the Division's Charities Registration
hotline, 973-504-6215,
from 9 am to 4 pm on weekdays.

Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or 973-504-6200.